NASDAQ composite: An index of price movements consisting of all stocks traded on the NASDAQ exchange. It was established in February 1971, with a base value of 100. Given the composition of the exchange, it became accepted as the best measure of movements in the value of stocks of high-tech companies.
Off-balance-sheet finance: A business asset that is not purchased and subject to depreciation, but is acquired by leasing or hire purchase, and thus does not appear on a company’s balance sheet.
Parallel import: One of a flow of imports from one market into another, outside the formal trade arrangements made by the company responsible for the product in question. It is a common practice that undermines price discrimination when a company tries to charge different prices in different jurisdictions.
Quality circle: A team established to improve the quality of manufactured products. The concept is based on the premise that those working closest to the process are likely to have greatest insight into improving the way it’s produced. This will be further enhanced if people work together as a team rather than as individuals.
Ramp/Ramping: The purchase of securities for the sole purpose of increasing their price. A practice used in the Euronote market; also practised in the company share price market in the course of a take-over bid - although it is no longer illegal for a company to buy its own shares.
Savings bonds (US): Long-term bonds issued by the US government at a discount to their face value at which they are redeemed after maturity. Investors receive interest and a capital gain on maturity. The bonds, which are denominated by letters - E bonds, EE bonds, HH bonds, etc - are free of state and local taxes and may be exchanged for other bonds so that liability to federal taxation may be deferred.
Soft commodity: A term applied to most commodities other than metals, but chiefly referring to agricultural products such as tea, coffee, sugar and wheat, and to raised products such as wool, hides and skins.
Tender offer (US): A public offer to purchase securities of one company by another at a fixed price, usually at a premium over the current market price. Also used to refer to a public offer for sale of a specific portfolio of securities, normally for cash.
Unearned premiums reserve (UPR): A fund set aside by an insurance company at the end of its financial year to cover risks to be borne in the future, i.e. for the length of time premiums will be received in respect of any particular insurance policy.
Source: Penguin Int’l Dictionary of Business & Finance
Compiled by Osman Kargbo: ousafrik@yahoo.com, +220 5221982/7345313